The Indian steel industry has formally requested the government to sharply increase import quotas for low-ash metallurgical coke, citing an urgent need to tackle what is being described as a critical supply crunch. Metallurgical coke is a key raw material used in steel production, and shortages can significantly disrupt operations at steel plants across the country.

The Demand for Increased Quotas

According to sources and a government document, steel producers are seeking a nearly sevenfold increase in import quotas. This unprecedented demand highlights the severity of the shortage and the potential impact on the domestic steel production supply chain.

Critical Supply Crunch

Industry representatives have indicated that the current domestic supply of low-ash metallurgical coke is insufficient to meet the production requirements of steel mills. As a result, plants are facing constraints that could slow down output and affect the broader steel sector, which is vital for infrastructure, construction, and industrial growth in India.

Role of Metallurgical Coke in Steel Production

Metallurgical coke is produced from coking coal and is a primary fuel and reducing agent in blast furnaces. Low-ash variants are particularly crucial as they minimize impurities in steel production, enhancing both efficiency and quality. Any disruption in its supply could lead to production bottlenecks and higher costs for steel manufacturers.

Industry Lobbying and Government Response

Steel producers have actively lobbied the Ministry of Steel and the Commerce Ministry, emphasizing that the current quotas are insufficient. The request for a sevenfold increase in imports aims to stabilize supply chains and ensure uninterrupted steel production. Officials are reviewing the proposal, with consideration of economic, trade, and domestic industry impacts.

Implications for the Steel Sector

If the government approves the requested increase, it would allow steel plants to maintain production levels and meet domestic demand for steel products. This move could also mitigate price volatility caused by shortages, support employment in steel manufacturing, and bolster infrastructure projects relying on steady steel supplies.

Conclusion

The call from Indian steel producers to sharply raise import quotas for low-ash metallurgical coke underscores the importance of raw material availability in the country’s steel sector. By potentially approving a sevenfold increase in imports, the government can address critical supply constraints, stabilize production, and support India’s broader industrial growth objectives.

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